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Nigeria’s Banner Oil Hits $12, Millions of Barrels Remain Unsold

  • Country’s fiscal breakeven oil price is about $133 a barrel
  • Country lacks on-land storage if buyers don’t want its barrels
Gas flares burn from pipes at an oil flow station in Idu, Rivers State, Nigeria.
Gas flares burn from pipes at an oil flow station in Idu, Rivers State, Nigeria.Photographer: George Osodi/Bloomberg
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The real oil market is killing Nigeria.

One of the country’s benchmark grades, Bonny Light, fell to about $12 or $13 a barrel this week, according to traders monitoring the West African market. The deeply loss-making level shines a light on a chasm that’s emerged between real crude prices that producers are fetching, and headline futures contracts like Brent, which stood at about $28 on Friday.